On July 5th, 2017, Groupe Renault and Brilliance China Automotive Holdings Limited (CBA) announced the signing of a binding framework cooperation agreement covering the main principles of the formation and operation of a joint venture (JV) in China focusing on the manufacturing and sale of light commercial vehicles (LCV).
To facilitate the formation of the JV, CBA will acquire a 100% holding in Shenyang Brilliance JinBei Automobile Co., Ltd. (SBJ), a leader in the Chinese LCV market1 with a strong network and market presence throughout China, after which Groupe Renault will purchase from CBA a 49% equity interest in SBJ resulting in a restructured joint venture company held by CBA (51%) and Groupe Renault (49%).
Beyond the existing JinBei vehicles, the joint venture will also develop, manufacture and distribute new vehicles and services under both the JinBei and Renault brands.
The transaction remains subject to customary regulatory approvals in the PRC and Hong Kong and is subject to CBA shareholders’ approval.
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